TETELESTAI | 1-800 Numbers

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Friday, October 28, 2016

This is another milestone set by Beijing to be in the court of the great powers, those whose currency refers. As of January 1, the yuan (or remimbi) rub shoulders with the US dollar, South African rand and the Botswana pula in the pockets of the people of Zimbabwe.

It must be said that the situation in this country is special. He has no national currency since 2009. The failed land reform President-dictator Robert Mugabe has led to a severe economic crisis that the government tried to stop cranking printing money.

Result: hyperinflation than 500,000,000,000% according to the IMF. In 2009, the face value of the last break of the Zimbabwean dollar circulated by the national bank of the country had reached a surreal level: 100.000 billion!

This colossal runaway had forced the country to bury the dollar and instead use foreign currencies. This summer, the last ticket holders could exchange to the central bank over $ 1 to 35 million Zimbabwean billion. An absolutely dizzying exchange rate.

Xi Jinping has mobilized to impose the yuan

The yuan, he built several months ago the basket of currencies that make up the foreign exchange reserves of Zimbabwe. And so, in 2016, it can be used for all payments of daily life. To succeed in imposing and its currency, China has multiplied gestures of goodwill.

​Xi Jinping, the president, whose movements are rare, personally went to Harare, the capital, in early December, with some arguments in the round.

​China is now the largest trading partner of the country, agreed to write off a debt of 40 million US dollars was Zimbabwe and pledged a loan of $ 1 billion, with lower rates. Several agreements, mainly aimed to enhance and rebuild infrastructure were also signed.

inexpensive gestures to the world’s largest economy whose currency gains greater legitimacy in exchange. The side of the Zimbabwean government is a winning transaction. President Robert Mugabe, speaking Tuesday hope it will facilitate the “cash injection” and even takes to dream that this agreement “could give a boost to the economy.”

Shunned by his former Western partners because of its failure to respect human rights, Zimbabwe looks more than ever towards the East ..

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